Core Viewpoint - Northern Trust Corporation (NASDAQ:NTRS) is currently considered one of the most undervalued quality stocks, with recent price target increases from multiple analysts despite varying ratings [1][2][3]. Analyst Ratings and Price Targets - Goldman Sachs raised its price target for Northern Trust to $148 from $130 while maintaining a Sell rating [1]. - Citi increased its price target to $162 from $143, keeping a Neutral rating, following a Q4 2025 earnings beat with an EPS of $2.42 and revenue of $2.14 billion [2]. - TD Cowen raised its price target to $175 from $165 with a Buy rating, citing a Q4 2025 core EPS of $2.62 that exceeded expectations due to higher pre-tax pre-provision income and lower provision expenses [3]. Company Overview - Northern Trust Corporation is a financial holding company that provides wealth management, asset servicing, asset management, and banking solutions for various clients, operating in two segments: Asset Servicing and Wealth Management [4].

Group 1 - Northern Trust Corporation (NASDAQ:NTRS) is one of the largest publicly traded asset managers, with TD Cowen raising its price target to $175 from $165 while maintaining a Buy rating [1] - The company's fourth-quarter 2025 core EPS was reported at $2.62, surpassing market expectations due to increased pre-tax pre-provision income and lower provision expenditure, with total revenue reaching $2.14 billion against an expected $2.06 billion [1] - Northern Trust's fee businesses are gaining traction, and the company has demonstrated effective expenditure management, contributing to a favorable forecast for 2026 [2] Group 2 - Northern Trust has upgraded its medium-term pre-tax margin and return on equity (ROE) projections, indicating confidence in its long-term profitability [2] - The company operates through subsidiaries, including The Northern Trust Company, providing wealth management, asset servicing, asset management, and banking solutions to various clients [3]

to Participate in BofA Securities 2026 Financial Services Conference on February 10CHICAGO--([BUSINESS WIRE])--Northern Trust will participate in the BofA Securities 2026 Financial Services Conference in Miami Beach on Tuesday, February 10....## Northern Trust Corporation Reports Fourth Quarter 2025 Financial ResultsCHICAGO--([BUSINESS WIRE])--Northern Trust Corporation has released its fourth quarter 2025 financial results. Results can be found at https://www.northerntrust.com/about-us/investor-relations a ...

Core Viewpoint - Northern Trust has appointed Katie Pries as the Country Executive for Northern Trust Asset Servicing in Canada, highlighting the strategic importance of the Canadian market for the company [1][5]. Group 1: Leadership and Management - Katie Pries will oversee the growth and management of Northern Trust's business in Canada, including client and regulatory relationships, and will serve on the Canadian Management Committee [2]. - Pries has a strong background, having previously served as president and CEO of Northern Trust Canada and in various senior roles since joining the company in 1989 [3][4]. Group 2: Market Importance - Canada is a key market for Northern Trust, with over 150 clients across 10 provinces and three territories, and the company has over 30 years of experience in providing asset servicing solutions tailored to institutional investors [5]. - Northern Trust Canada leverages its deep understanding of the local market to offer valuable insights and strategic perspectives to its clients [5]. Group 3: Company Overview - Northern Trust Corporation is a leading provider of wealth management, asset servicing, asset management, and banking services, with a global presence and significant assets under custody/administration of US$18.7 trillion and assets under management of US$1.8 trillion as of December 31, 2025 [6].

Core Viewpoint - Northern Trust Corporation will participate in the BofA Securities 2026 Financial Services Conference, highlighting its ongoing engagement with the financial services community [1]. Company Overview - Northern Trust Corporation is a prominent provider of wealth management, asset servicing, asset management, and banking services, catering to corporations, institutions, affluent families, and individuals [3]. - The company was founded in Chicago in 1889 and has a global presence with offices in 24 U.S. states, Washington, D.C., and 22 locations across Canada, Europe, the Middle East, and the Asia-Pacific region [3]. - As of December 31, 2025, Northern Trust had assets under custody/administration amounting to US$18.7 trillion and assets under management totaling US$1.8 trillion [3]. - Northern Trust has established a reputation for exceptional service, financial expertise, integrity, and innovation over its 135 years of operation [3].

Core Insights - Northern Trust Corporation is a significant player in the financial services sector, providing a variety of services such as asset servicing, fund administration, investment management, and banking solutions, with a global reach targeting corporations, institutions, and affluent individuals [1] Financial Efficiency Analysis - Northern Trust's Return on Invested Capital (ROIC) stands at 6.78%, while its Weighted Average Cost of Capital (WACC) is 19.12%, resulting in a ROIC to WACC ratio of 0.35, indicating that the company is not generating returns above its cost of capital [2] - In comparison, State Street Corporation has a ROIC of 63.17% and a WACC of 15.35%, leading to a ROIC to WACC ratio of 4.12, showcasing its superior efficiency in generating returns well above its cost of capital [3] - Comerica Incorporated reports a ROIC of 3.40% and a WACC of 12.35%, yielding a ROIC to WACC ratio of 0.28, similar to Northern Trust, indicating challenges in capital utilization [4] - M&T Bank Corporation and Zions Bancorporation have ROIC to WACC ratios of 0.60 and 0.26, respectively, with M&T Bank showing a more favorable balance compared to Northern Trust, while Zions faces similar efficiency challenges [5] - Marsh & McLennan Companies has a ROIC to WACC ratio of 1.84, demonstrating a strong ability to generate returns above its cost of capital, though not as high as State Street [5]

Core Viewpoint - Northern Trust Corporation is expected to report increased earnings and revenues for the fourth quarter of 2025, driven by higher net interest income and increased loan demand, despite facing challenges such as elevated expenses and asset quality risks [2][6]. Financial Performance Expectations - Analysts estimate an EPS of $2.37 and revenue of $2.06 billion for the upcoming quarterly earnings report [1]. - Growth in earnings and revenues is anticipated due to stabilizing funding costs and a rise in asset servicing fees [2]. Challenges and Risks - The company faces challenges including elevated expenses and risks related to asset quality, particularly non-performing assets [3][6]. - Concerns regarding financial leverage are highlighted by a debt-to-equity ratio of 1.21, indicating reliance on debt for financing [5]. Historical Performance - Northern Trust has a history of exceeding earnings estimates, as evidenced by its previous quarter's earnings surprise driven by increased net interest income and higher total assets under custody and management [3][6]. Market Position and Valuation - The stock is recognized as a top-ranked momentum stock by Zacks Investment Research, suggesting potential for market outperformance [4][6]. - The company's P/E ratio is 15.78 and price-to-sales ratio is 1.89, reflecting investor confidence, although a current ratio of 0.50 indicates potential challenges in covering short-term liabilities [4]. Cash Flow Concerns - Negative enterprise value to sales and operating cash flow ratios, at -0.97 and -5.56 respectively, may signal valuation and cash flow generation issues [5].

Company Overview - Northern Trust Corporation is headquartered in Chicago and provides a range of services including wealth management, asset servicing, asset management, and banking solutions to corporations, institutions, families, and individuals [11]. Investment Ratings - Northern Trust Corporation (NTRS) currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a moderate investment outlook [11]. Momentum Analysis - The stock has a Momentum Style Score of B, with shares increasing by 5.2% over the past four weeks [12]. - Five analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.01 to $8.68 per share [12]. - The company has an average earnings surprise of +4.6%, suggesting a positive trend in earnings performance [12].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score assesses a company's future growth potential through earnings and sales metrics [4] - Momentum Score identifies stocks with favorable price trends and earnings outlooks [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to identify strong investment opportunities [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +23.9% since 1988 [7] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - The direction of earnings estimate revisions is crucial when selecting stocks, as a declining forecast can negatively impact stock performance [10] Company Spotlight: UMB Financial Corporation - UMB Financial Corporation, based in Kansas City, MO, provides a range of banking and asset servicing solutions [11] - The company currently holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating moderate potential [11] - UMBF's Value Style Score is B, supported by a forward P/E ratio of 10.53, making it attractive to value investors [12] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate increasing to $10.70 per share [12] - UMBF has demonstrated an average earnings surprise of +15%, reinforcing its position as a potential investment opportunity [12]

Core Insights - Northern Trust Corporation (NTRS) is valued at approximately $26.8 billion and operates globally, providing services to corporations, institutions, and high-net-worth individuals through various financial platforms [1] - As of September 30, 2025, the company managed $18.2 trillion in assets under custody and administration, and $1.8 trillion in assets under management, highlighting its significant role in global finance [2] - Wall Street anticipates earnings of $2.36 per share for the upcoming quarter, reflecting a 4.4% year-over-year increase, with the company having a strong track record of beating earnings estimates [3] - Analysts project fiscal 2025 EPS to increase by 12.6% to $8.67, followed by an 8.9% rise to $9.44 in fiscal 2026, indicating a positive outlook for profit growth [4] - Northern Trust shares have increased by 35.8% over the past year, outperforming the S&P 500's 14.5% gain and the Financial Select Sector SPDR Fund's 13.5% increase [5] Recent Performance - The company experienced a 2.4% decline in shares following mixed third-quarter results, with revenue rising 2.8% year-over-year to $2.03 billion, slightly below expectations [6] - Despite the revenue miss, earnings per share rose 3.2% to $2.29, exceeding the consensus estimate of $2.26, indicating resilience in profitability [6]